TaxTMI 
TaxTMI 
TaxTMI 
2024 (5) TMI 436
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....e has raised the following grounds of appeal:- 1. a) "In the facts and circumstances of law, the Ld.CIT(A) has erred in appreciating the fact that the amount of Rs. 2,00,00,000/- has credited in books of assessee in form of share capital in AY 2007 -08, but shares were allotted in AY 2012-13, after 5 years of introduction which is violation of the statutory provisions of Company Act, hence, it is a loan in disguise of share capital and which has changed its nature in AY 2012-13." 3. The Brief facts of the case are that, the assessee company is engaged in the business of information technology services. The assessee's has filed the return of income for the A.Y. 2012-13 on 27.09.2012 disclosing a total income of Rs. Nil and the return of ....
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....the shares in F.Y 2011-12 against the share application money pending allotment disclosed and received in earlier years. The assessee's contentions are that the assessee has not received any share application money in the financial year 2011-12 and except allotment of shares. Whereas the Assessing officer was not satisfied with the explanations and observed that the genuiness and creditworthiness of the share applicants are not proved and invoked the provisions of section 68 of the Act and made addition of Rs 2,00,00,000/- as unexplained cash credit and assessed the total income of Rs. 2,00,00,000/- and passed the order u/sec. 143(3) of the Act dated 30.03.2015. 4. Aggrieved by the order, the assessee has filed the appeal with the CIT(A). ....
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....proved the genuiness and creditworthiness of the parties. We find the CIT(A) has dealt on the provisions of section 68 of the Act and the submissions of the assessee on the disputed issues and observed that the share application money was received in F.Y. 2006-07 by the assessee and further, there is no sum credited/ received in the books of account of the assessee during the F.Y. 2011-12 and hence addition is not sustainable and granted relief to the assessee observing at page 9 of the order read as under:- "Ground No. 2: Under this ground of appeal the appellant has disputed addition of Rs. 2 crores made by the AO u/s 68 in respect of 10 shareholders mentioned in para 2 of the assessment order. I have carefully considered the rival s....
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.... unexplained cash credit in the books of accounts of the assessee in the F.Y.2011-12. Whereas the assessee has received the share application money along with the share premium in the financial year 2006-07 and subsequently, in the financial year 2011-12 Rs. 4,00,000/- was transferred to share capital account and Rs. 1,96,00,000/- was transferred to share premium account and the assessee has shown in the financial year 2006-07 share application money pending allotment of Rs. 4,45,00,000/- which includes the share application money of Rs. 2,00,00,000/-. It is not disputed that the assessee has not received any share application money in the financial year 2011-12 except allotment of shares. We find that the provisions of section 68 of the Ac....
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....res forfeiture, as distinct and separate from the forfeiture of convertible warrant." b) "On the facts and in the circumstances of the case and in law, whether the Ld.CIT(A) was justified in treating the convertible warrants as capital asset, when the same is not covered under the definition of capital asset as per sec.2(14) of the IT Act." 9. At the time of hearing, it was brought to the knowledge of the bench, that the tax effect in the appeal is below Rs. 50 lakhs and is covered by the CBDT Circular No 17/2019 dated 08.08.2019. The Ld. DR has accepted the low tax effect aspects and applicability of CBDT Circular. We find as per the CBDT Circular dated 08.08.2019, no appeal shall be filed by the revenue before the Hon'ble Tribunal wher....